Texas Private Property Towing Rates - Texas Department of ...

Texas Private Property Towing Rates
Presentation to the
Towing, Storage and Booting
Advisory Board
May 19, 2010

• HB 2571 requires:
Overview
– 1. Private property fees to be established
– 2. Contracting for a study
• Morningside Research and Consulting conducted
the study
• TravisWolff conducted the cost analysis component
• 3950 licensed towing companies in Texas
• 2100 have a license that allows private
property towing
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Study Components
• Cost analysis
• Towing ticket analysis
• Fee schedule analysis
• Review of Texas municipal rate studies
• Towing company input through focus groups and
written comments
• Interviews with property owner representatives
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Cost Analysis
• 66 responses from towing companies, 42
had sufficient data for analysis.
• Direct costs related to tows were included in
the analysis.
• Sample not valid for weight distinctions or
for geographic distinctions.
• Profit margin of 9 percent included in the
rate.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Cost Analysis
• FY 2008 financial data resulted in a rate of
$141.39.
• Includes all weight classes across all geographic
regions.
• Applying the annual inflation adjustment results in
a 2009 rate of $148.76.
• Regional adjustments are based on COLA.
• An annual inflation adjustment considers labor
costs and fuel/depreciation/maintenance.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Towing Ticket Analysis
• 173 towing companies were selected to have
private property towing tickets reviewed.
• 68 of those companies conduct private property
tows
• An estimated 40% of all towing companies
licensed for private property tows actually
conduct private property tows.
• Highest average charges are in rural west Texas
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Towing Ticket Analysis
• 382 private property towing tickets from 68
towing companies were reviewed.
• Average light-duty towing charge on those
tickets is $122.30.
• Just under 1/3 of towing tickets contain 159
charges other than the towing fee.
• Those other charges add an average of
$43.38 to the total charge on the tickets.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Heavy-Duty Towing Tickets
• Additional analysis needed for heavy-duty
• 100 towing companies were contacted by letter
and telephone.
• 8 companies provided 55 towing tickets.
• Average towing charge is $461.21.
• About 1/3 contain charges other than the
towing charge.
• The additional charges average $97.26.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
8

Fee Schedule Analysis
• As expected, average private property rates
and non-consent rates are generally higher
on fee schedules than on towing tickets.
• Fee schedules contain a considerable
number of charges other than the tow fee,
many of which do not apply to private
property and/or light duty tows.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Recommended Flat Rates
Recommended Towing Fees by Zone
Zone
Light
Duty
Light
Duty
Rural
Medium
Duty
Medium
Duty
Rural
Heavy
Duty
Heavy
Duty
Rural
Zone 1 - South Texas $130 $142 $149 $163 $458 $499
Zone 2 - West Texas $128 $140 $146 $159 $448 $488
Zone 3 - Panhandle $125 $136 $143 $156 $438 $477
Zone 4 - North Texas $135 $147 $155 $169 $475 $517
Zone 5 - Southeast
Texas
$134 $146 $154 $168 $471 $513
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Private Property Towing Fees in Texas
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Recommended Light-Duty Rates
• Towing ticket average rate: $122.30
– Includes ONLY private property tows
• Cost analysis average rate: $148.76
– Includes ALL weight classes and all nonconsent
tows
– Includes ALL revenue and expenditures
• Fee schedules were not considered
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Private Property Towing Fees in Texas
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Recommended Light-Duty Rates
• The first 2 rates are weighted:
‣Towing tickets x .67
‣Cost analysis x .33
= statewide rate of $131.03
• The regional (zone) adjustments based on
COLA from the cost analysis are applied to
the statewide rate.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Rural Adjustment
• Cost analysis: 35% of towing
companyexpenses are for fuel, depreciation,
repairs and maintenance.
• This is the component that most impacts
private property towing in rural areas.
• A 25% adjustment is recommended to this
component of the rate.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Rural Adjustment
• The rural adjustment formula is:
(35% of zone rate x 1.25%) +
(65% of the zone rate)
• This adjustment is made for all 3 weight
categories.
• 133 counties in Texas are considered rural and
the rural rate would apply only to tows
originating in those counties.
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Private Property Towing Fees in Texas
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Weight Distinctions
• Based on the weight of the vehicle being
towed:
– Light-duty tows: gross weight rating of 10,000
pounds or less
– Medium-duty tows: gross weight rating of
more than 10,000 pounds but less than 25,000
pounds
– Heavy-duty tows: gross weight rating that
exceeds 25,000 pounds
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Medium-Duty Rates
• No data from towing tickets or cost analysis
specifically for medium-duty tows.
• Previous study:
– 13 localities had an average rate of $222.15
– 13 localities had a median rate of $150
– 9 of 13 localities have rates of $200 or below
– Average of 9 localities is $149.44
• Average statewide rate is $150.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
16

Heavy-Duty Rates
• No data from cost analysis specifically for
heavy-duty tows.
• We believe only about 10% of towing
companies conduct private property heavyduty
tows.
• The average rate on 55 towing tickets from
8 companies is $461.21.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
17

Recommended Rates
• Flat rates rather than hourly or price-perpound
– Most commonly used on tow tickets
• All inclusive
• The only other charge recommended:
– $50 drop fee for light- and medium-duty tows
– $100 drop fee for heavy-duty tows.
Morningside Research and Consulting, Inc.
Private Property Towing Fees in Texas
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Municipality
Rate Comparison
Comparison of Recommendations to
Current Regulated Municipal Towing Rates
Current Regulated
Recommended
Non-Consent Rate
Private Property Rate
Light Medium Heavy Light Medium Heavy
Duty Duty Duty Duty Duty Duty
Austin $150.00 $400.00 $800.00 $130.00 $149.00 $458.00
Beaumont $165.00 n/a n/a $134.00 $154.00 $471.00
Dallas $95.00 $150.00 $350.00 $135.00 $155.00 $475.00
El Paso $70.00 $350.00 $350.00 $128.00 $146.00 $448.00
Fort Worth $135.00 n/a $216 per hour $135.00 $155.00 $475.00
Houston $140.00 n/a
$218 per hour
(2-hour
minimum)
$134.00 $154.00 $471.00
Lubbock $75.00 n/a n/a $125.00 $143.00 $438.00
San Antonio $85.00 $125.00 $300.00 $130.00 $149.00 $458.00
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Private Property Towing Fees in Texas
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